Learning lessons from ACE deal The city -- and its taxpaying residents -- deserve mor

Posted:
07/29/2011 09:02:54 AM MDT

A gain, the complex ACE deal has many crying foul, worried that the city may become the landlord of an empty behemoth rather than home to a bustling business park.

But snags in the dreamy deadlines do not mean the deal is dead. All could stand to temper fear with a little learning.

Lesson 1: Large projects require long timelines.

The Colorado Association for Manufacturing and Technology enthusiastically announced its effort to develop an Aerospace Clean Energy (ACE) Manufacturing and Innovation Park, with NASA assistance, in December. Officials called for speedy responses from cities and developers wanting to land the deal.

Reply from the Colorado association, however, seemed slow as it missed its own deadline goals. Loveland city staff worked around the clock to submit its proposal. To redevelop the Agilent property, though, takes a developer, which the technology and manufacturing group found separately.

That business -- United Properties -- deserves time to do its due diligence for such a large property and project. Its intention to purchase the property was announced June 9, with a pact signed June 21 including a new deadline -- July 21 for a letter of intent that would outline the developers' purchase terms.

One month seems like a short time in which to properly address redevelopment of 812,000-square-feet of buildings that will need work to properly house the technology businesses that could locate there.

United Properties signed, but missed the deadline, bringing us to a second lesson.

United Properties and the Colorado Association for Manufacturing and Technology sent a four-paragraph letter, consisting of four sentences, to the city on Monday, July 25, four days after the initial letter of intent was due. One sentence, in particular, raises concern: "This letter is conditioned upon a clarification of the City of Loveland's long term role in the Park and the extent of its financial support for the proposed redevelopment."

The city of Loveland has done an amazing amount of work to make this development possible, on a faster-than-normal timeline and at a very affordable price. The city -- and its taxpaying residents -- deserve more timely and specific communication from its future partners.

Residents have backed this project since the city announced it would work to land the project here. But they believe the city has done its part. To hear developers might want more, though not surprising, rightfully worries some. Specific communication could allay those worries.

The manufacturing association could have communicated more clearly from the beginning, too.

Lesson 3: An intermediary role is necessary.

The Colorado Association for Manufacturing and Technology brought this project to Colorado and the parties -- the city and United Properties -- together. Although it considers itself a partner in the development, the organization should keep open communication with the city as well as the developer.

Both may not realize the risk and costs the city of Loveland has accepted to revive the Agilent property. But the association certainly should, as it has worked with the city since before United Properties came along.

As a leader, the Colorado Association for Manufacturing and Technology needs to keep all constituents in mind.

The city landed the ACE project, but the dealings have just begun. May all learn from the latest dealings, as many hands will be played before the production lines fire up.